"With the economy in crisis, many small business owners are looking for ways to cut costs, which often leads to layoffs. But employers should be careful when laying off employees if they want to avoid costly lawsuits."

Can employers terminate anyone they want? Can I ask workers to do more? Read the article for the answers.

If you are considering a layoff or reduction, please consult an Employment Law Attorney who will understand both federal and state laws pertaining to layoffs and employee separation laws - and there are many including WARN and OWBPA.

Key Point

Make sure you are properly classifying employees as exempt or nonexempt under the Fair Labor Standards Act. Nonexempt employees who work a 40-hour week must earn a minimum wage and must be paid overtime (one-and-a-half times the rate of regular pay) if they work more than 40 hours in a week. You cannot give nonexempt employees time off in lieu of overtime. More information is available at www.dol.gov/esa/whd/flsa/index.htm.